Today’s Market Summarised
NIFTY gains back from deep reds to close in green ahead of the Republic Day holiday.
NIFTY opened with a gap-down at 17,021 and fell heavily. Just in the first 5 minutes, the index bottomed out and went on to move up to 17,200. After a small fall and consolidation, the day-high was broken in the afternoon. NIFTY closed the day at 17,277, up 128 points or 0.75%.
BANK NIFTY opened at 36,647 and took support at yesterday’s low. Quick buying took the index up 900 points in 40 minutes followed by a 400 point fall. Yesterday’s high for the index was broken towards the end and Bank Nifty closed the day at 37,706, up 759 points or 2.05%.
Most sectoral indices closed in the green today. NIFTY PSU Bank(+4.2%), NIFTY AUTO(+2.3%) and NIFTY Media(+2.2%) closed well in the green. Only NIFTY IT(-0.33%) closed in red.
Most Asian markets closed in red, reacting to the global fall yesterday. European markets have all recovered and are now trading in the green.
News Picks
Maruti(+6.8%) closed as NIFTY’s top-gainer after announcing Q3 net profits of Rs 1,011 crore, a fall of 48% YoY but still better than estimates. It has given a breakout to fresh 52-week highs, do watch!
Hero MotoCorp(+2.8%) and Bajaj Auto(+2.5%) also featured in NIFTY’s top-gainers from the auto sector.
Axis Bank(+6.7%) shot up after announcing Q3 net profit up 224% to Rs 3,614 crores on better interest income and lower provisions. The stock moved up.
PSU Banks index(+4.2%) recovered after yesterday’s fall including a huge jump in share prices of SBI(+4.1%).
Deepak Nitrate(-6.2%) and IndiaMart(-14.2%) crashed down after disappointing Q3 results while Zeel(+7.7%) moved up in hopes of a good result today.
Sterlite Tech(+3.7%) announced a Rs 170 crore deal through a partnership with Powergrid Corp.
Zomato(+10%-UC) recovered from day-low near the lower circuit back to upper circuit.
Federal Bank(+4.3%) moved up after reporting Q3 standalone net profit at Rs 522 crores, up 30% YoY and above estimates.
Media reports that Google may subscribe to a preferential share issue by Bharti Airtel. Airtel (+3.1%) moved up.
Markets Ahead
Axis Bank and Maruti considerably pushed up NIFTY today after their results announcements. The results season helped in moving our markets up, along with a recovery in the global markets.
Just look at how the U.S. markets managed to close in green yesterday after trading in deep reds.
The Union Budget will be presented on February 1 at 11 am.
The support at 17,000 was taken out but for barely 20 minutes. Once the buying came, the level cemented itself as a good support for the upcoming sessions. The zone of 17,600-’650 is to be looked at as important resistance.
High options premiums were seen on both the calls and puts side, indicating that participants fear a big move.
Tomorrow is a market holiday on account of Republic Day. So what do you expect for the last Thursday of January? I feel that if global markets calm down over the next 2 days, all this ‘fear’ will go to waste and NIFTY will consolidate for Thursday.
But also, if there is a considerable move due to factors like inflation, gold prices, Ukraine tensions then Thursday might be tricky. It is because we will react to both tomorrow’s and day after’s international markets after being closed for Republic Day.
See you on The Stock Market Show at 7 PM!